Canadian manufacturers of masks and other coronavirus protective equipment seek compensation exceeding $5 billion from the federal government, claiming that Ottawa misled them regarding the purchase of their products and assistance in selling them.

In a claim statement submitted to the Federal Court, the companies and their industry association alleged that the government made “negligent misrepresentations” that led them to invest in innovations in personal protective equipment, manufacturing, and production.

The companies and the Canadian Association of Personal Protective Equipment Manufacturers say that the government provided misleading statements about the markets, direct assistance, flexible purchasing, and long-term support over a three-year period starting in March 2020.

The emergence of Coronavirus Disease 2019 (COVID-19) in early 2020 prompted governments and public health officials to implement exceptional measures — including lockdowns, vaccine requirements, and mask mandates — to prevent the spread of the disease.

The claim statement alleges that the Canadian misrepresentations resulted in investment losses of around $88 million and an additional $5.4 billion in expected lost market opportunities over a 10-year period.

The federal government will have the opportunity to present a defense against the unproven claims as the case continues.